CHAPTER 2: JOBS AND PURCHASE ORDER INTEGRATION€¦ · Chapter 2: Jobs and Purchase Order...

Chapter 2: Jobs and Purchase Order Integration

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CHAPTER 2: JOBS AND PURCHASE ORDER INTEGRATION Objectives

The objectives are:

• Review the new business logic for job ledger entry updates in Microsoft Dynamics® NAV 2009 Service Pack 1 (SP1).

• Explain how to track committed costs. • Describe fields that are added to the Job Ledger Entries and Value

Entries pages. • Discuss source ledger entries in a job planning line. • Explain the Automatic Update Job Item Cost parameter in the Job

Setup page.

Introduction Microsoft Dynamics NAV 2009 SP1 includes improvements to purchase order integration for jobs, which will help to increase visibility and transparency into purchase orders, costing, and Work In Process (WIP).

These improvements include the following features:

• Increased visibility into the purchase order and committed costs. Now the user can see outstanding purchase orders and received not invoiced purchase orders in the job task lines.

• Improved traceability and visibility of the Job Ledger Entry, Item Ledger Entry and Job Planning Lines. This helps the user keep track of costing adjustments.

• Simpler cost updates with automatic batch job runs for job ledger entries.

With the improvements to purchase order integration in Microsoft Dynamics NAV 2009 SP1, users have better insight into their projects, especially for costs, and can manage them more efficiently.

Scenario

Prakash is the Project Manager at CRONUS International Ltd.

Prakash monitors progress and performance for jobs. He must find information about purchase orders where nothing is received yet, for an overview of all committed costs for a job and to be able to estimate costs and activities required to complete the job.

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What's New in Microsoft Dynamics® NAV 2009 Service Pack 1 - Application

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To obtain a complete picture Prakash needs information about purchase orders with partial receipts. He also wants to know whether the costs are based on expected costs (based on receipts), or actual costs (based on invoicing).

NOTE: Expected cost totals on the job task lines include Value-Added Tax (VAT); other information on the job task line does not.

When a purchase line is posted to a job, the cost will be exclusive of VAT.

By using Microsoft Dynamics NAV 2009 SP1, Prakash's task of monitoring progress and performance of jobs will be helped by the improved visibility and tracing features in the Jobs feature area.

Business Logic of Purchasing and WIP In Microsoft Dynamics NAV 2009 SP1, the business logic of the job ledger entries update is changed to avoid the inclusion of purchase order lines that are not reflected in General Ledger in the WIP Calculation.

The modification also ensures a tracing feature for purchase order lines (variance issues) that are included in WIP calculation.

Original Business Logic

The current integration for purchases related to items introduced as an update for Microsoft Dynamics® NAV 5.0, updates the job ledger at receipt, based on estimated costs.

FIGURE 2.1 ORIGINAL BUSINESS LOGIC AT RECEIPT AND INVOICE



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New Business Logic

In Microsoft Dynamics NAV 2009 SP1 job ledger entries are created when a purchase order is invoiced, either through the Invoice option in Post Purchase Order or from Purchase Invoice, by using Get Receipt Lines followed by Post Purchase Invoice.

FIGURE 2.2 NEW BUSINESS LOGIC AT RECEIPT AND INVOICE

NOTE: Logic is added to the code to ensure that duplicate job ledger entries are not created for item ledger entries that are not yet fully invoiced. This logic is applied when you upgrade the system from either Microsoft Dynamics® NAV 5.0 SP1, with the purchase order integration applied, or Microsoft Dynamics NAV 2009.

Committed Costs on Job Task Lines and Purchase Lines Job task lines give a quick overview of the progress and performance of a job in local currency (LCY).

To improve the control of costs on a job, the Job Task Lines page enables you to view the costs already booked to a job, in addition to those costs to which you are committed through purchase orders.

NOTE: The amounts viewed in the Job Task Lines page include VAT.

Committed costs are costs that companies are committed to, even if delivery has not occurred with invoices neither raised nor paid. Committed costs are important for users to gain an overview of the total costs for a job as early as possible.



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In Microsoft Dynamics NAV 2009 SP1, you can add the following fields to the Job Task Lines page:

• Amt. Rcd. Not Invoiced (Amount received not invoiced) • Outstanding Orders

You can add the following fields to the Purchase Lines page:

• Outstanding Amount • Amt. Rcd. Not Invoiced • Job Line Type - to analyze the effect of the outstanding purchases. • Job Task No. - to see the actual connection to the job task.

Demonstration: Create and View Committed Costs on Job Task Lines

Use the following steps to create a purchase order for a job, receive it, and invoice it. During this process, you will trace the purchase information from the job and view the new fields.

Use the Project Manager RoleTailored Client profile in Microsoft Dynamics NAV 2009 SP1 for this demonstration.

1. Open Departments, Administration, RoleTailored Client, and Profiles and then double-click the PROJECT MANAGER profile.

2. Select the Default Role Center check box and then click OK. 3. Close and reopen Microsoft Dynamics NAV. 4. Click Home, and Purchase Orders and then click New to create a

new purchase order. 5. Select 30000 in the Buy-from Vendor No. field. 6. Right-click the Lines column header and then select Choose

Columns. 7. Add the Job No. , Job Task No., and Job Line Type fields, and

then click OK to close the page. 8. Create the purchase order line by using the following information:

Field Name Value

Type Item

No. 1996-S

Quantity 3

Job No. DEERFIELD, 8 WP

Job Task No. 1210

Job Line Type Contract



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9. Click Release and then click OK to close the purchase order. 10. Open Home and then Jobs and select the line where No. is

DEERFIELD, 8 WP. 11. Click Job Task Lines, right-click the column header in the Job

Task Lines page, and then select Choose Columns. 12. Add the Outstanding Orders and Amt. Rcd. Not Invoiced fields,

and then click OK. 13. Select the line where Job Task No. is 1210, and verify that the value

of the Outstanding Orders field is 2,652.00. 14. Click the value in the Outstanding Orders field and verify that the

Purchase Lines page opens. 15. Right-click the column header in the Purchase Lines page, and then

select Choose Columns. 16. Add the Outstanding Amount (LCY), Amt. Rcd. Not Invoiced

(LCY), Job Line Type, and Job Task No. fields and then click OK. Click OK in the Information window.

17. Close the Purchase Lines page and then reopen it by clicking the value 2,652.00 in the Outstanding Orders field.

18. Verify that the value of the Outstanding Amount (LCY) field is 2,652.00, the Job Task No. is 1210, and the Job Line Type is Contract.

19. Click Show Document to open the purchase order, and then click Post.

20. Select the Receive button and then click OK. Close the purchase order, and then close the Purchase Lines page.

21. Click Actions and then Refresh in the Job Task Lines page and verify that the value of the Amt.Rcd. Not Invoiced field is 2,652.00 and the Outstanding Orders field is zero (0).

22. Click the value in the Amt.Rcd. Not Invoiced field and verify that the Purchase Lines page opens and the value in the Amt.Rcd. Not Invoiced (LCY) field is 2,652.00.

23. Click Show Document to open the purchase order, and then type "1256" in the Vendor Invoice No. field.

24. Click Post, and then select the Invoice button. Click OK. 25. Close the Purchase Lines page. 26. Click Actions and then Refresh in the Job Task Lines page and

verify that the values in the Amt.Rcd. Not Invoiced and Outstanding Orders fields are zero.

27. Close the Job Task Lines page.



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Transparency: Job Ledger Entries and Value Entries To improve the transparency and traceability of purchase orders and costing, Microsoft Dynamics NAV 2009 SP1 has added fields in the following pages:

• Job Ledger Entries • Value Entries

Update Job Item Cost

The Job Ledger Entries page has the following two new fields in Microsoft Dynamics NAV 2009 SP1:

• Adjusted • DateTime Adjusted

These new fields indicate that a job ledger entry is changed and when, based on the Adjust Cost - Item Entries batch job, and helps the user to analyze the cost amount that was used when WIP was posted.

FIGURE 2.3 NEW FIELDS ON THE JOB LEDGER ENTRIES PAGE

NOTE: For more information about the Adjust Cost - Item Entries batch job, refer to the "Automatic Update Job Item Cost" lesson in this chapter.

Value Entries - Job Ledger

The Job Ledger Entry No. field is added to the Value Entries page to enable the user to trace the entry that has created/updated a Job Ledger Entry.

Traceability: Job Ledger and Job Planning Lines An indication if a job planning line is created based on whether a job ledger entry and a flow field to find the source ledger entry are added to the Job Planning List page in Microsoft Dynamics NAV 2009 SP1.

The system will select the new System-Created Entry check box when a job planning line is created based on a job ledger entry, regardless of source.



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If a job planning line with the System-Created Entry check box selected is about to be changed manually, the following warning message will be displayed:

FIGURE 2.4 WARNING MESSAGE

If the user selects Yes, the System-Created Entry check box will be cleared.

This demonstration will show how to view and update the source ledger entries in a job planning line.

To perform this demonstration,you must complete the "Create and View Committed Costs on Job Task Lines" demonstration.

Demonstration: View and Update Source Ledger Entries

This demonstration shows how to view and update the source ledger entries in a job planning line.

Follow these steps to perform the demonstration:

1. Open Home and then Jobs and select the line where No. is DEERFIELD, 8 WP.

2. Click Job Task Lines, and then select the line where Job Task No. is 1210.

3. Click Related Information, Job Task and then Job Task Planning Lines to open the Job Planning List page.

4. Right-click the Job Planning List column header, and then select Choose Columns.

5. Add the System-Created Entry and Ledger Entry No. fields and then click OK.

6. Scroll down to the bottom line and verify that the System-Created Entry check box is selected for the line where No. is 1996-S, and the Document No. field is populated.

7. Click Edit Planning Lines, and then find the line where No. is 1996-S, and the Document No. field is populated (the bottom line).

8. Update the Planning Date field to one day later, and then click OK. 9. Verify that a warning message appears. 10. Click Yes to continue, and then close the Job Planning Lines page. 11. Scroll down to the bottom line in the Job Planning List page and

verify that the System-Created Entry check box is clear for the line where No. is 1996-S, and the Document No. field is populated.



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Automatic Update Job Item Cost You can set up Microsoft Dynamics NAV 2009 SP1 to perform automatic cost adjustments every time that the Adjust Cost - Item Entries batch job is run. The adjustment process and its results are the same as when you run the Update Job Item Cost batch job.

You will then have more accurate usage and WIP values and profit statistics without relying on other users to run the Update Job Item Cost batch job periodically.

Use the Update Job Item Cost batch job to update the usage costs in the job ledger entries to match the actual costs in the item ledger entry. If adjustment entries have a different date than the original entry (when the inventory period is closed), then the ob ledger will not be updated. Job planning lines related to the updated item ledger entry will also be updated if they have not yet been manually changed or transferred to a sales invoice. This process ensures that the job costs are updated for any changes in item costs caused by cost adjustments and changes in item application.

NOTE: When you set a time option for automatic cost adjustment, select one that balances your requirements for cost accuracy with the performance level of your database

You will find the Automatic Update Job Item Cost parameter in the Job Setup page using the following path:

DEPARTMENTS>JOBS>ADMINISTRATION>JOBS SETUP.

FIGURE 2.5 AUTOMATIC UPDATE JOB ITEM COST CHECK BOX ON THE JOB SETUP PAGE



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Lab 2.1 - Track Committed Costs and Update a Source Ledger Entry

You are a Project Manager at CRONUS International and you want to create and track a purchase order for an item that will be used for a project that you are responsible for.

Scenario

By using the Project Manager profile in the RoleTailored Client, you will create a purchase order for an item to be used in project, and then track the committed costs during purchase transactions.

Finally, you will update a System-Created Entry for the same purchase order transaction.

This lab consists of the following exercises:

• Update the default role center. • Create a purchase order. • View committed costs on the job. • Update the purchase order and view the committed costs. • View and update source ledger entries

NOTE: If you have completed the demonstrations in this module, you will not have to add columns to any pages or update the default role center.

Challenge Yourself: Update the Default Role Center

Update the RoleTailored Client profile to Project Manager, and restart Microsoft Dynamics NAV.

Need a Little Help?

1. Open Departments, Administration, RoleTailored Client and then Profiles to find the RoleTailored Profiles.

2. Restart Microsoft Dynamics NAV to enforce the updated RoleTailored Profile.

Step by Step: Update the Default Role Center

1. Open Departments, Administration, RoleTailored Client and then Profiles: double-click the PROJECT MANAGER profile.

2. Select the Default Role Center check box and then click OK. 3. Close and reopen Microsoft Dynamics NAV.



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Challenge Yourself: Create a Purchase Order.

1. Create a purchase order column header for vendor 30000. 2. Add the Job No., Job Task No., and Job Line Type fields to the

Purchase Orders page. 3. Create a purchase order line by using the following information:

Field Name Value Type Item

No. 1996-S

Quantity 3

Job No. GUILDFORD, 10 CR

Job Task No. 1210


4. Release the purchase order.

Need a Little Help?

1. Open Home and then Purchase Orders to create a purchase order. 2. Fill the Buy-from Vendor No. field before you add columns to the

Purchase Orders page. 3. Click Release to release the purchase order.

Step by Step: Create a Purchase Order.

1. Click Home and then Purchase Orders: click New to create a new purchase order.

2. Select 30000 in the Buy-from Vendor No. field. 3. Right-click the Lines column header, and then select Choose

Columns. 4. Add the Job No. , Job Task No., and Job Line Type fields and then

click OK to close the page. 5. Create the purchase order line by using the following information:

Field Name Value

Type Item

No. 1996-S

Quantity 3

Job No. GUILDFORD, 10 CR

Job Task No. 1210



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Field Name Value


6. Click Release and then click OK to close the purchase order.

Challenge Yourself: View Committed Costs on the Job

1. Add the Outstanding Orders and Amt. Rcd. Not Invoiced fields to the Job Task Lines page for the GUILDFORD, 10 CR job.

2. Verify that the value of the Outstanding Orders field is 2,652.00. 3. Open the Purchase Lines page, and add the Outstanding Amount

(LCY), Amt. Rcd. Not Invoiced (LCY), Job Line Type, and Job Task No. fields.

4. Verify the following values:

Field Name Value

Outstanding Amount (LCY) 2,652.00

Job Task No. 1210


Need a Little Help?

1. The Job Task Lines page is accessed by opening Home, Jobs and then clicking Job Task Lines.

2. The value in the Outstanding Orders field will include a link that opens the Purchase Lines page.

Step by Step: View Committed Costs on the Job

1. Open Home and Jobs and select the line where No. is GUILDFORD, 10 CR.

2. Click Job Task Lines, right-click the column header in the Job Task Lines page, and then select Choose Columns.

3. Add the Outstanding Orders and Amt. Rcd. Not Invoiced fields, and then click OK.

4. Select the line where Job Task No. is 1210, and verify that the value of the Outstanding Orders field is 2,652.00.

5. Click the value in the Outstanding Orders field and verify that the Purchase Lines page opens.

6. Right-click the column header in the Purchase Lines page, and then select Choose Columns.

7. Add the Outstanding Amount (LCY), Amt. Rcd. Not Invoiced (LCY), Job Line Type, and Job Task No. fields and then click OK.

8. Click OK in the Information window.



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9. Close the Purchase Lines page, and reopen it by clicking the value 2,652.00 in the Outstanding Orders field.

10. Verify that the value of the Outstanding Amount (LCY) field is 2,652.00, the Job Task No. is 1210, and the Job Line Type is Contract.

Challenge Yourself: Update the Purchase Order

1. Post the receipt of the purchase order, by opening the purchase order from the Purchase Lines page.

2. Verify the following values in the Job Task Lines page for Job Task No. 1210:

Field Name Value Amt.Rcd. Not Invoiced 2,652.00

Outstanding Orders zero (0)

3. Verify that the value of the Amt.Rcd. Not Invoiced field in the Purchase Lines page is 2,652.00 for Job Task No. 1210.

4. Invoice the purchase order, by using the Vendor Invoice No. 1234. 5. Verify that the values of the Amt.Rcd. Not Invoiced and

Outstanding Orders fields are zero (0) in the Job Task Lines page for Job Task No. 1210.

Need a Little Help?

1. Use Show Document in the Purchase Lines page to open the purchase order.

2. Type the Vendor Invoice No. in the purchase order before you post the invoice.

Step by Step: Update the Purchase Order

1. Click Show Document in the Purchase Lines page to open the purchase order, and then click Post.

2. Select the Receive button, and then click OK. 3. Close the purchase order, and then close the Purchase Lines page. 4. Click Actions and then Refresh in the Job Task Lines page and

verify that the value of the Amt.Rcd. Not Invoiced field is 2,652.00 and the Outstanding Orders field is zero (0) for Job Task No. 1210.

5. Click the value in the Amt.Rcd. Not Invoiced field and verify that the Purchase Lines page opens, and the value in the Amt.Rcd. Not Invoiced (LCY) field is 2,652.00.

6. Click Show Document to open the purchase order, and then type "1234" in the Vendor Invoice No. field.



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7. Click Post, and then select the Invoice button. 8. Click OK. 9. Close the Purchase Lines page. 10. Click Actions and then Refresh in the Job Task Lines page and

verify that the values in the Amt.Rcd. Not Invoiced and Outstanding Orders fields are zero (0) for Job Task No. 1210.

Challenge Yourself: View and Update Source Ledger Entries

1. Open the Job Planning List page for Job Task No. 1210, and then

add the System-Created Entry and Ledger Entry No. fields to that page.

2. Verify that the System-Created Entry check box is selected for the line where No. is 1996-S, and the Document No. field is populated.

3. Update the Planning Date field to two days later, and verify that a warning message appears when you save it.

4. Continue to save the updated planning date and then verify that the System-Created Entry check box is clear.

Need a Little Help?

1. To open the Job Planning List page, click Related Information, Job Task and Job Task Planning Lines in the Job Task Lines page for the Job Task No. 1210.

2. Click Edit Planning Lines to enable an update in the Planning Date field.

Step by Step: Update Source Ledger Entries

1. Click Related Information, Job Task and Job Task Planning Lines to open the Job Planning List page from Job Task No. 1210 in the Job Task Lines page.

2. Right-click the Job Planning List column header and then select Choose Columns.

3. Add the System-Created Entry and Ledger Entry No. fields and then click OK.

4. Scroll down to the bottom line and verify that the System-Created Entry check box is selected for the line where No. is 1996-S, and the Document No. field is populated.



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5. Click Edit Planning Lines, and then find the line where No. is 1996-S and the Document No. field is populated.

6. Update the Planning Date field to two days later, and then click OK.

7. Verify that the following warning message appears:

FIGURE 2.6 WARNING MESSAGE FOR SYSTEM-CREATED ENTRY

8. Click Yes to continue, and then close the Job Planning Lines page. 9. Verify that the System-Created Entry check box is now clear for

the line where No. is 1996-S, and the Document No. field is populated.

Summary Jobs and Purchase Order Integration showed how Microsoft Dynamics NAV 2009 SP1 improves the integration between jobs and purchase orders to increase visibility and transparency into costing, and Work In Process (WIP).

With these improvements, you will have a better overview of your projects, and can manage costs more efficiently.



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Test Your Knowledge 1. Which purchase order update creates a job ledger entry in job planning lines

in Microsoft Dynamics NAV 2009 SP1?

( ) Purchase order release ( ) Purchase order receipt ( ) Purchase order invoice ( ) Purchase order creation

2. Which field is completed on the Job Task Line, when a job related purchase order has the status Released?

( ) Amt. Rcd. Not Invoiced ( ) Outstanding Amount ( ) Outstanding Orders



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Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter

1.

2.

3.



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Solutions Test Your Knowledge

1. Which purchase order update creates a job ledger entry in job planning lines in Microsoft Dynamics NAV 2009 SP1?

( ) Purchase order release ( ) Purchase order receipt (•) Purchase order invoice ( ) Purchase order creation

2. Which field is completed on the Job Task Line, when a job related purchase order has the status Released?

( ) Amt. Rcd. Not Invoiced ( ) Outstanding Amount (•) Outstanding Orders



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CHAPTER 2: JOBS AND PURCHASE ORDER INTEGRATION€¦ · Chapter 2: Jobs and Purchase Order...

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